Self-Study

Interest Rate Risk Management

Tuesday, May 1, 2018 – Tuesday, April 30, 2019

This CPE course begins with a review of interest rates, then describes methods of interest rate risk such as equity financing, debt financing, or a combination of both. It describes internal and external hedging methods, as well as forward rate agreements (FRAs). It examines the features and operation of interest rate guarantees (IRGs) and interest rate futures (IRFs). It then explains interest rate futures and options, and methods of exchanging these transactions via swap.

Objectives

Recognize features of common instruments for managing interest rate risk

Identify techniques for combining options in order to achieve a specific risk profile: caps, collars and floors

Identify internal hedging techniques

Highlights

Operation and features of the more common instruments for managing interest rate risk: swaps, forward rate agreements, futures and options.

Techniques for combining options in order to achieve a specific risk profile: caps, collars and floors.